My Turn: Legislators made tough decisions on FY09 budget correction

By Majority Leader John McComish (Dist. 20) Despite recent news coverage, I know of no legislator who enjoyed the tough decisions we made on the FY09 budget last week. Believe me when I say those decisions were extremely difficult; and in many cases, agonizing choices. Correcting the FY09 budget was the first priority of the Legislature this session. It is important to mention that the current fiscal year budget correction would have been far more painless and less dramatic had those reductions began two years ago when the first signs of our economic downturn started. However, Gov. Napolitano ignored the economic indicators and instead opted to increase discretionary spending, disguising it as investments. The state didnt have the money to cover those investments and to address that issue, Gov. Napolitano instituted a series of accounting and borrowing schemes, hoping the economy would improve and recover, camouflaging her financial mismanagement. We all know how this story unfolded, the economy hasnt improved, state revenues continue to fall and every citizen has had a front row seat watching as Arizonas economy worsens. Just for perspective its important to understand that Arizonas budget shortfall is so profound that lawmakers must not only deal with a structural deficit where state spending exceeds revenues but we now must also deal with an immediate cash flow deficit. In reality, Arizona may soon struggle with cash flow and struggle to pay for the states most basic expenses. The FY09 budget correction was a responsible approach for ensuring the state had a balanced budget and could meet its $1.6 billion financial obligations the last five months of this fiscal year. The Arizona constitution requires a balanced budget each fiscal year and because of that lawmakers are prohibited from deficit spending. Unfortunately, the borrowing schemes instituted by Gov. Napolitano requires the state to make massive interest payments, which has been an ongoing problem as lawmakers have worked to balance the FY09 budget. Arizonas economy is so bad not even new taxes could help to balance the budget the revenue just could not come in fast enough to deal with the cash deficit the state is currently experiencing. Left with few options, the 49th Legislature acted swiftly and decisively to correct the FY09 budget crisis before the situation grew even worse. Lawmakers sent a responsible budget to Gov. Brewer, which after her first week in office called the legislature into Special Session, which is something Gov. Napolitano failed to do her last several months in office. The House has begun to work on solving the 2010 deficit, which looms even larger at $3.3 billion. The good news in this bad news story is that economic experts predict the states downturn will be over by the years end, followed by a slow recovery in 2010. As lawmakers, we must be innovative in our approach to resuscitate the states economy to ensure Arizona emerges stronger and more economically vibrant. As the Majority Leader of the House, I pledge this Legislature will do our best to make sure Arizona remains financially strong. John McComish is the Majority Leader of the Arizona House of Representatives and can be reached at JMcComish@azleg.gov or 602-926-5898.